The current market wage rate is $30, the rental rate of land is $1,000 per unit, and
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The current market wage rate is $30, the rental rate of land is $1,000 per unit, and the price per service unit of capital is $500. A firm's managers find that under their current allocation of factors of production, the marginal product of labor is 300, the marginal product of land is 10,000, and the marginal product of capital is 4,000. Is the firm minimizing costs? Why or why not?
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